NBR cuts solar equipment import tax to 1% from 17%

The National Board of Revenue (NBR) has cut the tax on solar power equipment imports from 17 percent to just 1 percent, extending the benefit to commercial importers for the first time.

The benefit will remain effective for 180 days from the date of issuance of the relevant statutory regulatory order (SRO), the revenue authority said in a press release today.

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This builds on an earlier tax cut announced from the beginning of FY2026-27. Including 15 percent VAT and 2 percent advance income tax, the total tax was 17 percent.

The NBR said the move aims to lower costs for solar projects and speed up renewable energy expansion amid the global energy crisis and domestic electricity shortages.

It expects the concession to boost generation capacity, reduce fossil fuel dependence and strengthen national energy security.

The tax break covers equipment such as mounting structures, solar panels, lithium batteries used with photovoltaic generators, inverters, battery management systems, and monitoring and control systems.

To qualify, importers must meet specific conditions, including manufacturer certification that lithium batteries are new and compliant with the industrial lithium battery IEC 62619:2022 safety standards.

Additionally, joint undertakings from company leadership and the Bangladesh Sustainable and Renewable Energy Association are required to confirm that the equipment will be used solely for solar power development.

Customs clearance will require verification and approval at the deputy or assistant commissioner level.

The NBR did not disclose the expected revenue loss or the additional power generation capacity likely to result from the tax cut.